What does the EU-SADC EPA really say? An analysis of the economic partnership agreement between the European Union and Southern Africa

After more than 10 years of negotiations, the European Union and six members of the Southern Africa Development Community (SADC) successfully concluded talks on an economic partnership agreement (EPA). The EPA is a reciprocal trade agreement under the umbrella of the Cotonou Agreement, under which all parties commit to trade liberalisation but under which the SADC EPA countries can exempt sensitive products from liberalisation so as to take account of their level of development. This article explains in detail the contents of the agreement, examines the degree of trade liberalisation, and explores the lesser known provisions of the EPA. The article then argues that part of the agreement's developmental character resides in the numerous provisions that offer benefits to SADC EPA states but not to the EU. It also highlights provisions that could be invoked to help African states in the process of economic diversification. Finally, contrary to some detractors, the article takes the view that policy space for policy-makers remains by and large respected.     

Trade Liberalisation and the Australian Labor Party

The three most substantial decisions to reduce Australia's trade barriers — in 1973, 1988 and 1991 — were made by Labor Governments. Labor's policy shift preceded the conversion of social democratic parties in other countries to trade liberalisation. To understand why this was so, it is necessary to consider trade policy as being shaped by more than interest groups and political institutions. Drawing on interviews with the main political figures, including Gough Whitlam, Bob Hawke, Paul Keating and John Button, this article explores why the intellectual arguments for free trade had such a powerful impact on Labor's leadership, and how those leaders managed to implement major tariff cuts, while largely maintaining party unity.     

Participation of African member states in the World Trade Organisation (WTO) multilateral trading system

Abstract

The core purpose and goals of the World Trade Organisation (WTO) are to enhance growth by allowing each country to trade freely according to its comparative advantage. The other stated main objectives of the WTO are: raising standards of living; providing full employment; reduction of tariffs and non‐tariff barriers; and the elimination of discriminatory treatment. According to the current orthodox economic view, trade openness is essential for growth: countries that liberalise their imports and orientate production towards exports are assumed to have faster growth than those that do not, and the faster the rate of opening, the greater will the prospect be for development. The emphasis on trade liberalisation and export orientation in the past ten years following the adoption of the Uruguay Round has led to phenomenal growth in world merchandise trade, which has grown consistently faster than output. The orthodox view approach is today expanded and modified with the view that liberalisation measures are not sufficient by themselves and should be accompanied by other factors such as sound macroeconomic policies, good governance and a modern infrastructure. Africa's dependence on primary commodities as a source of export earnings has meant that it is vulnerable to weather conditions, market vagaries, and price volatility, arising mainly from supply shock and the secular decline in real commodity prices. The attendant terms of trade losses have exacted heavy costs in terms of incomes, indebtedness, investment, poverty and development. Therefore, the basic approach that liberalisation has a direct link to economic growth and should be undertaken as fast as possible is being questioned and has been challenged by empirical studies in recent years. The relevant studies have shown that there is a lack of relationship between the degree of trade liberalisation and the rate of growth. The emerging paradigm accepts that there are possible costs, as well as potential benefits of trade liberalisation to a particular developing country, depending on the conditions in that country, and the type of liberalisation undertaken. The other impediments and weaknesses identified as affecting effective, efficient and economical participation of African members in the WTO include rapid liberalisation as potential source of fiscal instability; general absence of peace, security and democracy; globalisation and lack of competitive ability; supply‐side constraints; high export concentration ratio; problems of implementation; exclusion and/or marginalisation from knowledge‐based economy; and lack of capacity. The Doha Development Round was initiated to attend to, and address, these problems, and it is still too early to predict the outcome. African countries need to look for African solutions to their socio‐economic and political problems, adopting transdisciplinary approaches in the context of the African Renaissance paradigm.     

Changing South Korean Water Policy after Political and Economic Liberalisation

This study explores the way in which South Korean water policy has been dynamically (re-)constructed by continuing political contestations among diverse social forces acting in and through the state in the face of political and economic liberalisation. The path-dependency of the state-driven water resource policy under the former authoritarian regime did not disappear even after the democratisation. It was difficult to transform the old authoritarian and hierarchical water governance to the newly democratic and environmentally friendly one because the Ministry of Construction, as a main actor in driving water policy under the authoritarian regimes, did not give up its interest in a dam-based policy orientation, although it did partially accept institutional tools for democratic policy making, such as public hearings and the participation of civil society in the process of establishing the water policy plan. It also showed democratic and environment-friendly gestures using the rhetoric of environmentalism and localisation. Overall, this article emphasises the importance of the path-dependency of the past authoritarian regimes under democratised society to better understand the current democratic regime’s policy orientation.     

APEC labour markets: Structural change and the Asian financial crisis

This study examines the impacts of longer-term structural changes on the labour markets of Asia Pacific Economic Cooperation (APEC) member economies, as well as the short-run labour market consequences of the Asian financial crisis. All APEC economies have experienced significant structural change in the process of development. A major factor in this structural change has been increased trade intensity (increase in exports and imports as a share of GDP) that has occurred over the last 20 years. Because these structural changes have been extensively induced by trade liberalisation, this study provides insights into the likely consequences of the implementation of APEC's agenda on trade and investment liberalisation and facilitation. The impact of structural change is examined using a range of data, such as disaggregated changes in output and employment by industry and occupation over the period 1980 to 1997, and data on changes in trade intensity for each of the APEC nations. Other data, such as changes in rates of urbanization, are also used to indicate the other important concomitant effects of economic transformation. For several Asian economies, the linear path of growth and structural change was severely disrupted by the Asian financial crisis. This article examines the impact of this crisis on Asian labour markets, in general, and those most affected by the crisis, in particular. In many countries within the region, a failure of education and training systems to respond to often rapid shifts in the skill composition of labour demand is leading to industry and occupation specific labour shortages. International labour migration within the APEC region is viewed as a product of these structural changes and a mechanism that assists in filling gaps in the labour markets of the region's economies.     

Production networks,economic integration and the services sector: Implications for regional trade agreements in southern Africa

Debate on an appropriate framework for economic integration in southern Africa has hitherto focused largely on matters relating to trade in final goods, with little analysis of the potential benefits of production sharing and fragmented trade, or of challenges related to the accompanying role of the services sector. The first goal of this article is thus to explore the possible benefits for the development of specialisation and trade expansion related to the international fragmentation of production, and whether such benefits may be better harnessed by southern African countries in a context of regional integration. Secondly, the critical role of the services sector in production-sharing arrangements leads to questions about developing country services sectors and regional versus multilateral services liberalisation. The article therefore considers the importance of the services sector in the fragmentation context, and the growing debates surrounding services aspects of developing country regional trade agreements. It is argued that while there may be a case for the promotion of production-sharing arrangements in regional trade agreements in southern Africa, key constraints that continue to hinder the region's trade and development agenda remain the conflicting rules of origin in economic arrangements with overlapping membership, and non-tariff barriers to trade, particularly intra-regional transport costs.     

Liberalisation,the state and agriculture in India

Indian state embarked upon a comprehensive reform of the economy in late 1980s, and there is more or less consensus amongst policy makers regarding liberalization. The reform process in India has not encountered much resistance from pressure groups because it has not made much headway in respect of debureaucratising and depoliticising the management of the infrastructure and in decentralizing rural development.

It is important in this context to look at the macroeconomic policy changes and its impact on agricultural sector. This article attempts to analyse the performance of Indian agriculture under liberalisation. We know that in the recent past Indian agriculture is being neglected. The benefits of liberalisation could not hitherto reach the rural poor because of the failure of economic reforms to penetrate into the vital agricultural sector. The article also attempts to analyse the adverse impact, if any, of free market conditions on the rural poor and suggests changes to revamp agriculture so as to make it more competitive.     

Von einem liberalen zu einem post‐liberalen Wohlfahrtsstaat: der Wandel der gewerkschaftlichen Sozialpolitik in der Schweiz

The article reconstructs the development of the Swiss welfare state against the background of the transformation of trade unions' social policy activities. It detects a sequence of trade unions' activities in social policy which runs uniformly to the development of the welfare state. While in the liberal phase of the Swiss welfare state trade unions were sceptical of national social policy and preferred mutual insurance and collective bargaining, in its post‐liberal phase they have become proponents of national social policy legislation.     

Analytic authoritarianism and Nigeria

Despite two decades of democratisation and some recent liberalisation in North Africa, dictatorships linger around the world. New research on comparative authoritarianism questions personal rule and studies a range of dependent variables, such as why dictators sometimes provide public goods. This ‘analytic authoritarian’ literature emphasises collective governance and explores the institutional basis of policy control. Nigeria's military regimes between 1966 and 1998 provide examples of how military factions and subnational actors can impose transaction costs on authoritarian policy processes. These alternative centres of policy control limited the ability of dictators to unilaterally advance their policy preferences on questions relating to federalism and transition plans. The article concludes by linking this analysis to Nigeria's lingering legacies of authoritarianism and the institutional basis of its 1999 transition.     

Stones on the Road: The Politics of Participation and the Generation of Crisis in Bolivia

This paper demonstrates that recent protests in Bolivia must be linked to the failure of efforts to improve democratic participation in the country. It argues that such failures can be traced to a history of prejudices in national development and society and persistent biases and contradictions within international development policy and institutions. Despite these obstacles, the paper concludes that ideas for appropriate development and realistic alternatives for change to government and democracy are visible in recent critical development thinking and amongst the different social and cultural groupings involved in the demonstrations.     

Reading the Trump Administration’s China Policy

The policy toward China under the Trump Administration is a rare combination of the toughest part of that of the Democratic Party, which is trade, and of the Republican Party, which is national security. The National Security Strategy by the Trump Administration defined China and Russia as competitors. It is the first time for the US Government to be harsh against both China and Russia (the Soviet Union included) since the late 1960s. Though trade is by far the most salient aspect of President Trump’s confrontational China policy, it is in fact a whole-of-the-government approach or pushback that the US government is taking with China, which means that not just the White House but various Departments and the Congress are tough with China, dealing with many issues from trade to human rights to national security. The President might actually be the softest link, almost exclusively focusing on trade. This might be a historic turnaround in US policy toward China.     

Mega-Regional Trade Deals in the Asia-Pacific: Choosing Between the TPP and RCEP?

The emergence of “mega-regional” trade agreements has recently become the most significant trade policy issue in the Asia-Pacific. Since 2010, governments in the region have launched negotiations for two new trade agreements: the United States-led Trans-Pacific Partnership (TPP) and the ASEAN-led Regional Comprehensive Economic Partnership (RCEP). Differentiated by their membership, scope and level of ambition, the TPP and RCEP embody competing visions for how the Asia-Pacific trade system should evolve, and regional governments must now make choices over which initiative better serves their economic and political interests. This article explores the trade policy choice posed by these mega-regional trade negotiations, reviewing the evolution of the Asia-Pacific trade system, the recent emergence of the TPP and RCEP, and the competitive dynamics inherent in the development of the two proposals. It argues that four key considerations (trade policy ambition, the role of ASEAN, US-China geopolitical rivalry and defensive concerns) will be of key importance in informing regional governments’ decisions as the TPP and RCEP move towards completion in 2015.     

Chile's (Inter)National Identities: Framing the Relations with Bolivia and Peru

National identities play a significant role in Latin American international relations. They affect the ways in which policy‐makers view themselves and others, as well as influencing the ways in which their policies are ‘received’ abroad. In this way, identities create opportunities and constraints for foreign policy‐making, framing the relations between Latin American countries. The author argues that, since 1990, three main patterns of Chilean identity recently affected the country's relations with its northern neighbours Bolivia and Peru: a ‘neoliberal identity’, a ‘legalistic identity’ and a ‘progressive identity’. These three patterns of identity have created opportunities for cooperation as well as causes for conflict.     

Myths of Commonwealth Betrayal: UK–Africa Trade Before and After Brexit

Abstract

This article critically interrogates claims that a British exit from the European Union (EU) (Brexit) will create opportunities for the UK to escape the EU’s apparent protectionism and cumbersome internal politics in order to pursue a more liberal and globalist trade agenda based on the Commonwealth. Taking a historical view of UK and EU trade relations with the Commonwealth in Africa, the author highlights the way in which the incorporation of the majority of Commonwealth states into the EU’s preferential trading relationships has reconfigured ties between the UK and its former colonies over time. Further, the author suggests that the EU’s recent attempts to realise a vision for an ambitious set of free trade agreements in Africa—the Economic Partnership Agreements—was disrupted not by EU protectionism or internal politics but rather by African resistance to the EU’s liberal agenda for reciprocal tariff liberalisation and regulatory harmonisation. The UK therefore faces a complex challenge if it is to disentangle its trade relations with Africa from those of the EU and to forge its own set of ambitious free trade agreements with African Commonwealth partners.     

The Mining Industry and the State: The Politics of Tin Restriction in Bolivia, 1936–1939

In the aftermath of the Chaco War (1932–1935) a strong left nationalist political current emerged in Bolivia which defined the three large mining companies of Patiño, Hochschild and Aramayo as a superstate, controlling both the economy and the politics of the nation to their own advantage. This article challenges that characterisation by examining the way in which the state exercised control over the two largest producers. Unfortunately, the state lacked the technical capacity to use its powers responsibly, preventing the development of a coherent mining policy.     

A strategic view of South African trade policy in relation to the future global trading environment

This paper puts forward a strategic view of what South African trade policy should be doing in relation to the future global trading environment. The future is uncertain, but if the past is prologue, South African trade policy needs to be positioned for a continuation of the commodity cycle, and to exploit markets in emerging economies, including Africa, more fully. Simultaneously, it needs policies to spur labour-intensive services and manufacturing exports, both because these will be needed if commodity markets are less robust and because of their employment-creating potential. South Africa's current strategy, however, is inflexible, heavily focused on domestic concerns and is in danger of placing South African exporters at a disadvantage in accessing the growing emerging economies. It also gives rise to an inherent tension between the interests of South Africa and the African region in trade negotiations. Having as the central tenet of trade policy a commitment to deal with tariffs on a case-by-case basis will not serve South Africa well in the global economy that is likely to emerge over the next 15 years. A simpler tariff structure would facilitate the conclusion of free trade agreements and actually make industrial policy more effective.     

Governance and Regulation of the Peruvian University System: Overcoming Reform Resistance through Quality Assurance Policies

This article examines the new governance of the Peruvian university system, which evolved in response to market liberalisation and weak quality assurance mechanisms. New actors and commercial interests emerged, building their network of relationships within the political arena. With the passing of a new Universities Law in 2014, ambitious reforms were set in motion, designed to reverse the decline in the quality of higher education. This study examines these reforms, focusing on whether and how they are changing the governance and structure of the system. It also identifies some conceptual and design flaws, such as the weaknesses of the main steering body and the accreditation regime, as well as limitations on the independence of the regulatory agency.     

Brexit,Development Aid,and the Commonwealth

Abstract

Development cooperation between the European Union (EU) and the African, Caribbean and Pacific (ACP) group of states has provided a vehicle for the UK’s ongoing relationship with the majority of the Commonwealth, although this was widely overlooked in the run-up to the UK referendum and its aftermath. Membership of the EU has provided the UK with the opportunity to collectivise its obligations to ACP Commonwealth states and a framework for its development cooperation relations across the Global South. This has augmented British leadership in global development and the alignment of development policy and practice at the global, regional and national levels. This paper argues that withdrawal from the EU would be a lengthy and costly process that threatens to undermine the UK’s position in global development, current levels and sources of development funding and existing and nascent trade relations. While this will present particular challenges for ACP Commonwealth states, there may also be opportunities to propose and advocate for alternative frameworks. However, recent changes to the UK’s post-referendum political leadership does not augur well for those hoping for a roll back of pressures for liberalisation and associated reforms.     

The Language of Security: Reassessing Australia's Policies of Free Trade and Offshore Detention

Offshore detention and bilateral free trade constitute hallmarks of Australia's international policy. This paper explores how these policy directions were originally justified in the Pacific Solution and the Australia‐US Free Trade Agreement (AUSFTA). In the literature both policies are theorised as security offerings but whilst the Pacific Solution is obviously exclusionary, AUSFTA aimed at including Australia in the US's orbit. This suggests that security as a justification for policy is flexible, complex, and warrants closer observation of its practical articulations. Reviewing the speeches with which the relevant Ministers introduced their legislation, I argue that offshore detention and bilateral free trade derive from a specific language of security in which policy‐makers view individual actors as the basis of national threats. The language of security invokes a threatening international environment by focussing on the selfish and amoral components of human behaviour whilst diminishing social institutions and collective structures. Vague anarchy and simplified individualism position the state as a righteous protector rather than a rational policy‐maker. I conclude by questioning whether this is a sound basis for policy and canvass options for escaping the language of security.     

Labour and trade-related regulation: beyond the trade-labour standards debate?

As well as consolidating and enhancing the process of trade liberalisation, the completion of the Uruguay Round of Multilateral Trade Negotiations establishing the World Trade Organisation (WTO) formalised the expansion of multilateral trade regulation into areas of commercial activity previously deemed to be trade-related. This expansion, however, has been highly uneven, privileging the needs of capital, and to a much lesser degree land, over labour. Attempts to secure a degree of regulatory protection for labour in the legal framework of the WTO—by requiring that the Organisation's members adhere to a set of core labour standards when engaged in trade-producing activities—have so far failed. Both the Singapore (1996) and Geneva (1998) Ministerial Meetings of the WTO witnessed discussion of this issue, yet neither resulted in a comprehensive and satisfactory outcome for labour. That said, significant opportunity exists for the reconstruction of the trade-labour standards debate within the WTO. This article, seeks to demonstrate how this might be the case. In doing so, it first reviews the process of General Agreement on Tariffs and Trade (GATT)/WTO involvement in the regulation of trade-related areas. Second, it explores the current deadlock that characterises the issue of trade and labour standards within the WTO's legal framework as well as the more significant positions that have emerged among the Organisation's membership by focusing on British, US and EU involvement in this issue. Third, it identifies the reactions of certain key member states to the protests of civil society at the 1998 Geneva Ministerial Meeting of the WTO as the means by which the issue of trade and labour standards may once again be raised. And finally, it considers how the effective regulation of labour standards might be made within the confines of the WTO's legal framework by examining a range of options.